India needs solid businesses not startups: Jaggi Vasudev

Expressing his concern over rising numbers of failed startups, Isha Foundation founder Sadhguru Jaggi Vasudev said that India needs solid businesses to support its economy.

"The Indian economy is not ready for a startup epidemic. I have met people who say they have set up 20 startups. Some people will call me conservative, but there is no safety net for those who fail. When people fall, they fall really hard in our country. India is in such a stage of economic development where we need solid businesses that last many years and will build teams, possibilities and experiences," Vasudev said in an interview to Mint on the sideline of the sixth annual leadership workshop, which was attended by 220 entrepreneurs in Coimbatore last week.

He further said that there is a tremendous amount of money lost in startups and apps. Many started but how many survived, he questioned.

"I think family businesses are still crucial for India’s economy but they need to professionalize. For young entrepreneurs too, family should play a significant part," he added.

Jaggi Vasudev on Govt policy

However, he praised the government for making the initial move in making India a developed economy but expressed his view to make policy transparent.

What the government must do is that the finance ministry and PMO must meet practitioners from major sectors and not talk, but listen to them and get their feedback on steps taken. This exercise should be done in the right earnest, and then they can make up their minds on what to do, and how to do it, he said.

The government’s main motive has been to increase enterprises, but right now, enterprises and business are suffering.

The number of new start-ups launched this year has slumped to merely 800 in last 9 months in compare to 6000 in last year, according to data from Tracxn. In 2017, the start-ups have raised around $8 Billion, compared with $4.6 billion in 2016.

Meanwhile, the Govt has been reportedly reviewing tax policy for startups. On Tuesday, Indian Government along with the US will kick off three-day event the Global Entrepreneurship Summit (GES-2017), a gathering of hundreds of budding, ambitious and well-known entrepreneurs as well as investors and supporters of the eco-system, in Hyderabad

Vasudev is popularly known as Sadhguru. He founded the Isha Foundation, a non-profit organization which offers Yoga programs around the world and is involved in social outreach, education and environmental initiatives.

He was conferred the Padma Vibhushan award by the Government of India on 13 April 2017 in recognition of his contribution towards spirituality.